US to rescue crisis-ridden Citigroup

The US administration has come out with a bailout atrategy to rescue the crisis ridden Citigroup which includes a $20bn government stake in the firm and standing guarantee to the firm’s risky assets amounting to billions of dollars.

This measure by the US Treasury Department, the Federal Reserve and the Federal Deposit Insurance Corp., is aimed at supporting a giant financial institution whose collapse would wreak havoc on the already crippled financial system and the US economy.

The sweeping plan is geared to minimise a crisis of confidence in the company, whose stock has been battered at the browses in the past week on apprehensions about its financial health.